Nazara Technologies sets aside $100 million for mergers and acquisitions

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Nazara Technologies, the Indian gaming firm, has revealed plans to allocate $100 million (approximately Rs.830 crore) over the next 24 months for mergers and acquisitions, aiming to bolster its presence. The company, which became the country’s first publicly-listed gaming entity, is looking to strengthen its presence in the gaming, esports, and ad-tech sectors, focusing on established gaming IPs, technologies like web3 and virtual reality, artificial intelligence and markets like India and North America.

Founder of Nazara Technologies, Nitish Mittersain, said in a statement to Money Control, “We are particularly focused on investing in and acquiring gaming studios globally with a specific focus on India’s 500 million gamers as well as the large North American market,”

The decision follows the recent capital infusion of Rs.760 crore from investors such as Nikhil Kamath, co-founder of Zerodha, and leading financial institutions like ICICI Prudential MF and SBI Mutual Fund.

Nazara’s revenue distribution reveals India as its primary market, contributing 46 percent, followed by North America at 38 percent, and the rest of the world at 16 percent for the first nine months of FY24. The company operates across gaming, esports, and advertising verticals, boasting titles like the World Cricket Championship, Kiddopia, and Nodwin Gaming.

Mittersain highlighted the success of Nazara’s acquisition strategy, showcasing post-acquisition growth in Kiddopia, Nodwin Gaming, and Sportskeeda. Nazara’s decentralised model allows these entities to operate independently, promoting scalability and expansion.

In the future, Nazara plans to venture further into its existing segments rather than diversifying into new verticals. Acquiring gaming-focused ad-tech companies, programmatic ad-tech firms, and media planning agencies aligns with the company’s goal of establishing its position in developed markets.

Nazara launched its publishing unit last October to leverage India’s position as a gaming hub. The company aims to roll out up to 20 games across various platforms, including mobile, web3, virtual reality, and personal computers, over the next 12-18 months.

Nazara’s also recently stepped into influencer marketing, with a 10.77 percent stake acquisition in Kofluence. Through an influencer-driven platform, Nazara intends to enhance its game portfolio’s visibility across social media platforms, fostering engagement and growth in the gaming ecosystem.